Barriers and Challenges of the Iranian Oil and Gas Industry in Financing Projects and the Role of US Sanctions and FATF Regulations

One of the challenges and obstacles in the oil and gas industry is the financing of projects related to the industry. Applied and targeted projects for extraction, exploration and productivity that will boost the economy of the country. Currently, in the country s capital market, financing of oil and gas projects is carried out through debt and capital- based instruments that are not responsive to the cost of implementing and deploying projects and requires the entry of foreign investors in this sector. The most important barriers to project financing are political considerations and non-political considerations. Political considerations, such as how countries co-operate with other countries, foreign policy of the country, sanctions, international regulations, international relations, conflicts and wars with other countries, as well as domestic political crises, political differences and political factions. In this regard, the FATF regulations and the sanctions imposed by foreign countries, especially the United States, have had a significant effect on the lack of encouragement of foreign and domestic investors, as the most important political factors influencing project financing, given the function and appropriateness of the international community.

Keywords:

Oil and Gas Industry , Financing , Sanctions , FATF Regulations